What You Need to Know to Be Protected – Understanding Condo Insurance
As rates increase throughout North America, some BC strata corporations are straining to maintain coverage. Here’s what you need to know about your condo insurance.
As strata policies are renewed you may be shocked to learn that there’s been a sharp increase in your strata corporation’s deductible. Sewer backup and water damage deductibles are known to be increasing by a whopping $250,000 or more.
To help offset these costs, WV Insurance is now offering coverage for the excess water damage deductible not covered under existing condo owner policies. This covers water damage deductibles up to $250,000 in cases where the condo owner is responsible for the strata corporation’s deductible.
Did you know this about your condo insurance?
Strata condominiums have two policies in force. Your personal condominium policy is intended to cover your personal property (contents), the increased costs of building repairs arising from any upgrades or improvements and betterments made inside the unit as well as your personal liability.
The Strata Corporation carries the building policy. These two policies are indented to complement one another but not to provide overlapping coverage. As a unit owner, you should be aware of the coverages to both of the policies.
It is recommended that you review the strata corporations insurance policy annually to ensure your personal condo insurance policy provides sufficient coverage should you be assessed a deductible from the strata corporations insurance policy.
You may need to consider making increases to the following:
- Personal property
- Improvements & Betterments
- Loss Assessment
- Corporate Strata Deductibles
Rented & Seasonal Condo policies would be insured differently. They may not automatically provide coverage for a number of perils such as burglary, vandalism/tenant vandalism, sewer back up, overland water, replacement cost, and contents. These coverages may be available to add to your policy depending on the insurance carrier.
An example of how strata corporation’s insurance works
The strata corporation’s deductible is $200,000. The deductible coverage under the condo owner’s policy is $75,000. Excess water damage deductible coverage pays $125,000.
Individual circumstances will vary, of course, so be sure to check how your strata corporation’s insurance has changed.
WV Insurance is offering excess water damage deductible coverage for:
- Unit owners who are living in their unit.
- Seasonal condos used solely by the unit owner.
- Units rented to a single family with a signed annual lease.
Don’t get stuck with inadequate coverage. Contact us today for a quote! Or call one of our experienced unionized Brokers at 1-800-663-4200 to review your options.
**For a special discount, please mention that you are a member of BC FORUM.
